Upper House Returns Bill Authorizing ₹54,067 Crore for Historical Excess Expenditure
The Rajya Sabha has approved the Appropriation Bill 2026 to cover past spending overruns, primarily driven by debt repayment obligations. Despite an Opposition walkout, Finance Minister Nirmala Sitharaman detailed financial adjustments for Jammu, Kashmir, and Ladakh.
Key takeaways
- The Appropriation Bill 2026 covers ₹54,067 crore in excess spending from the 2022-23 financial year.
- Nearly ₹53,871 crore of the total expenditure was directed toward the repayment of national debt.
- The Union government provides ₹13,000 crore annually to cover Jammu and Kashmir police salaries and pensions.
- Opposition members walked out of the session demanding an apology from Home Minister Amit Shah over student protests.
Parliamentary Approval of Expenditure
The Rajya Sabha concluded its consideration of the Appropriation Bill, 2026 on August 6, returning the legislation to authorize approximately ₹54,067 crore in spending incurred during the 2022-23 fiscal year. This legislative action proceeded despite a walkout by Opposition members, who demanded the presence of Home Minister Amit Shah regarding recent police actions against students.
Breakdown of Financial Demands
Finance Minister Nirmala Sitharaman clarified that the excess expenditure centers on two specific areas already audited by the Public Accounts Committee (PAC). According to the PAC’s 39th Report tabled in April, the majority of the funds—₹53,871 crore—were utilized for debt repayment. A smaller portion, totaling ₹196.44 crore, originated from a judicial order affecting the Ministry of Railways.
Fiscal Support for Union Territories
Addressing inquiries regarding financial aid for Jammu and Kashmir, the Finance Minister highlighted that the central government assumes the full annual cost of police salaries and pensions in the region, totaling nearly ₹13,000 crore. Sitharaman noted that the administration provided an extra ₹5,000 crore annually for the 2024-25 and 2025-26 periods to meet urgent administrative needs. She also confirmed the full repayment of Ladakh’s debt and a subsequent restructuring of Jammu and Kashmir’s financial obligations following the 2019 constitutional changes.
Legislative Context and Disruptions
The session faced significant hurdles when proceedings were halted for an hour following the post-lunch reconvening at 2:15 p.m. Opposition lawmakers exited the chamber to protest the absence of the Home Minister, yet the Finance Minister maintained that the spending measures were necessary to validate past fiscal adjustments and support regional stability seven years after the abrogation of Article 370.
Source: The Hindu — National
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